Jacky Zuo's questions to Qudian (QD) leadership • Q1 2021
Question
Jacky Zuo of China Renaissance inquired about the credit business's loan balance outlook for the year and potential regulatory pressures on its lending model. He also asked for details on the unit economics and the planned investment scale for the new Wanlimu Kids education business.
Answer
Sissi Zhu, VP of Investor Relations, explained that while risk metrics are improving, the regulatory environment is tightening, leading to a prudent strategy and an expected decrease in the loan balance in Q2. She confirmed the company has already shifted to a licensed model, mitigating regulatory risk. Regarding Wanlimu Kids, Ms. Zhu stated that specific guidance is not provided, but unit economics are expected to be superior to traditional offline education and catering businesses due to lower acquisition costs. A significant nationwide expansion is planned for the year, with over 80 centers currently in design or renovation.